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Sunday March 24, 2019

Hi there newbie here. What tax do I pay confused 🤔

If I buy a property,renovate it and sell on for profit, do I pay CGT or Income Tax? I have purchased homes in the past which I let out, but have sold them not at a profit. So I guess that classes me as a second home owner? If the house sells at a profit, do I minus my personal allowance, and renovation cost and legal costs and what's left over I'm taxed on that BUT WHICH TAX BRACKET US IT CGT, INCOME TAX OR BOTH? Any help be appreciated.

Asked on Jul 28 2018, General in Littleborough | Report content

Answers (1)

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  • Hello - yes, you would have to pay Capital Gains Tax when you sell the property for profit. This would depend on what tax bracket you are in - but, you're right, you will be able to deduct your personal allowance and a number of expenses. I would suggest talking to a qualified accountant about this as they would be able to give you a more accurate figure.

    Answered on Jul 30 2018, Report content

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